Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study
Shinta Amalina Hazrati Havidz
Finance Program, Accounting Department, Faculty of Economics & Communication, Bina Nusantara University, Indonesia
Viendya Ervina Karman
Finance Program, Accounting Department, Faculty of Economics & Communication, Bina Nusantara University, Indonesia
Indra Yudha Mambea
School of Business and Management, Institut Teknologi Bandung, Indonesia
Published 2021-12-22


Bitcoin price
macro-financial factors
liquidity ratio
Global Consumer Survey

How to Cite

Havidz S. A. H., Karman V. E. and Mambea I. Y. (2021) “Is Bitcoin Price Driven by Macro-financial Factors and Liquidity? A Global Consumer Survey Empirical Study”, Organizations and Markets in Emerging Economies, 12(2), pp. 399-414. doi: 10.15388/omee.2021.12.62.


This research aims to utilize macro-financial and liquidity elements as the factors that may affect the price of Bitcoin as the largest cryptocurrency in terms of market capitalization. The macro-financial factors analyzed in this study were foreign exchange, stock market index, interest rates, and gold, while liquidity ratio is the internal factor. This study applied a fixed-effect model (FEM) and Generalized Method of Moments (GMM) on gathered weekly data from 1 January 2017 to 29 December 2019 from 18 countries with the total of 2,826 observations. The analysis revealed that US Dollar amplifies Bitcoin trading; an increase in interest rate will decrease investors’ intention to invest in Bitcoin as a speculative asset, and gold could replace Bitcoin as a substitute asset. Moreover, Bitcoin was found to be highly liquid, which attracts many investors, while the stock market index proved to be insignificant.



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